Shyam Metalics Projects Strong Growth with Expansion Plans
Shyam Metalics and Energy Ltd., a leading metal manufacturer in India, is projecting strong growth over the next five years, driven by strategic expansions, product diversification, and backward integration to enhance efficiency. The company’s recent entry into the aluminum and stainless-steel segments marks a key milestone, highlighting its growth ambitions.
With revenue growing at a CAGR of 24.7% from ₹4,376 crore in FY20 to ₹13,195 crore in FY24, Shyam Metalics has demonstrated robust performance. EBITDA rose to ₹1,569 crore in FY24, with stainless steel and aluminum contributing 4.5% and 4% of total sales, respectively.
Key growth targets for the next five years include:
- Stainless Steel: Increasing production 4.3x, from 1.5 lakh tons to 6.5 lakh tons.
- Aluminum: Expanding output 1.8x, from 24,000 tons to 42,000 tons annually.
- Carbon Steel: Boosting capacity from 2 million tons to 3.56 million tons, with growth in new products like color-coated sheets and ductile iron pipes.
- Power Generation: Raising capacity 1.8x, from 386 MW to 706 MW.
The company plans to invest ₹10,025 crore in CAPEX since its IPO, with ₹4,948 crore already spent. Shyam Metalics aims to reach ₹40,000 crore in revenue and ₹4,500 crore in EBITDA by FY29.
With 80% of its power sourced from captive plants, a strong cash surplus, and a CRISIL AA credit rating, Shyam Metalics is well-positioned for sustainable growth and value creation for its stakeholders.
